The Future of the Digital Living Room

Intel, Sony, Google, and Logitech are about to embark on a space where many technology companies have already failed miserablyyour TV set.

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For most people, the digital experience is dominated by three screens. Until recently, the PC was at the center of this world. However, over the past three to four years, the smartphone has become integral in the ways we interact with our digital content. Meanwhile, the other primary screenthe televisionhas played a minimal role in the delivery of Internet-driven digital content. More and more, however, the PC is becoming the new holy grail for such content. Services like YouTube, Hulu, and Twirl TV are becoming important ways to deliver television content on demand. TV is swiftly becoming a battleground for the PC, consumer, cable, and telecom industries.

Media adapters have been around for some time "slinging" PC-based content to the TV. Specialized boxes like Roku and the Apple TV deliver content from Internet connections to TV sets through HDMI or video ports. The experience on these devices have been less that stellar, however. The real push now is to integrate digital services directly into the television. At the moment, there are two school of thought on how exactly this will occur.

The first involves bringing Internet connections directly to the set through Wi-Fi or by adding a hard wired network connection. The idea is growing in popularity. Many big TV makers are creating Internet connected TVs, based on the assumption that they can just integrate Web-based content into the TV experience. There are problems with this approach. There are big issues with interface, content standards, and formats. Also, given the fact that the lifespan of a TV is five to seven years (or more), the set may soon be eclipsed by the pace of Internet technology and standards. Personally, I would never buy a "smart" TV, since I couldn't be assured that it is future-proof.

The second approach makes more sense for most consumers. I imagine that it will be adopted by many of us over the next few years. The concept is embodied by the "smart" set top box, Blu-Ray Player, and game console. All you really need to make a TV "smart" is an OS, UI, and various standards. However, a user does not want the PC experience on their TV. They want a simple way to access Internet content to watch TV shows, movies, and perhaps specialized apps.

Attempts to deliver this manner of simplicity and seamless integration of Internet content into the TV experience has thus far fallen short. There have been some good advances in this space, and while some dedicated boxes may play the role of mediator between Internet content and the TV, it's more likely that this level of intelligence and Internet content connectivity arrive via smart set top boxes, Blu-Ray entertainment systems, and game consoles in the future.

For this reason, I was intrigued when reports arrived that Intel, Sony, Google, and Logitech are collaborating to create a total Internet connected TV experience. Keep in mind, however, that these are PC companies used to PC-centric was of thinking. As I said earlier, people don't want a repeat of their PC experience on their TV sets. If this group has a chance of succeeding, they'll have to approach the project differently.

That said, using PC-based technology makes sense. You need an OS, fast processor, solid TV, Blu-Ray player, game console partner, and a partner who can create a smart remote for navigating this content. Google brings the OS (most likely a version of Chrome), user interface, and development platform to the table. Intel provides the chip required to run HD video, Flash, and any other processor intensive apps. Sony has the hardware end covered, with its experience developing TVs, Blu-Ray players, and the PlayStation. And, of course, Logitech will most likely create a new version of its Harmony remote for the device. This certainly won't be the last partnership formed in attempts to deliver Internet content to the living room, but it's the first one that bear close watching.

I should also add that smart set-top boxes may still be used to deliver Internet content to the TV. At present, however, cable companies are conflicted. Their customers want ways to watch services like Hulu through their cable boxes. But doing so means delivering free content that overlaps with the company's already licensed programming. Cable companies are between a rock and a hard place. Networks are moving more and more toward their own "on demand" programming.

Ultimately, the consumer will win in this battle. At some point in the near future, cable companies will bow to the demand of the consumer, finding creative ways to deliver Internet content through set top boxes. Hopefully it will happen soon. With the recent announcement from Google, Intel, Sony, and Logitech, they'd better figure this out fast.

Tim Bajarin is one of the leading analysts working in the technology industry today. He is president of Creative Strategies (www.creativestrategies.com), a research company that produces strategy research reports for 50 to 60 companies annuallya roster that includes semiconductor and PC companies, as well as those in telecommunications, consumer electronics, and media. Customers have included AMD, Apple, Dell, HP, Intel, and Microsoft, among many others. You can e-mail him directly attim@creativestrategies.com.

Tim Bajarin is recognized as one of the leading industry consultants, analysts and futurists covering the field of personal computers and consumer technology. Mr. Bajarin has been with Creative Strategies since 1981 and has served as a consultant to most of the leading hardware and software vendors in the industry including IBM, Apple, Xerox, Compaq, Dell, AT&T, Microsoft, Polaroid, Lotus, Epson, Toshiba and numerous others.
Mr. Bajarin is known as a concise, futuristic analyst, credited with predicting the desktop publishing revolution three years before it...
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